What is Depreciation in Yacht Insurance?
Depreciation is the decrease in your yacht's value over time due to:
- Age
- Normal wear and tear
- Usage
- Obsolescence
Impact on Insurance
Agreed Value Policies Depreciation does NOT affect your payout - you receive the agreed amount.
Actual Cash Value (ACV) Policies Depreciation IS factored in - payout = replacement cost minus depreciation.
Depreciation Schedule
Typical annual depreciation rates:
- Fiberglass hulls: 2-4%
- Electronics: 10-15%
- Engines: 5-10%
- Sails: 8-12%